IMPERIUMDAILY.COM-BEIJING – China’s exports in November 2019 are still declining. This decline has occurred consecutively over the past four months.
Depreciation was shown from Chinese Customs data, Sunday, December 8, 2019. This decline confounded market expectations that there would be an increase. Allegedly, this decline is due to continuous pressure on Chinese producers from the China-United States trade dispute.
Reporting from Reuters, a 17-month trade war has increased the risk of a global recession. This condition also sparked speculation that Beijing will issue more stimulus measures to sustain slowing growth in the world’s second-largest economy.
In November, Chinese exports fell 1.1 percent compared to the beginning of the year. Though from a Reuters poll to analysts, the decline was only 1 percent. Then exports in October also decreased 0.9 percent.
Imports unexpectedly rose 0.3 percent from the beginning of the year. Even though analysts expect Chinese imports to fall 1.8 percent. And Chinese imports also fell 6.4 percent in October. This increase occurred for the first time since April 2019.
Beijing and Washington continue to negotiate for a phase one trade agreement aimed at eliminating trade disputes that have rocked global markets and sparked fears about a global recession.
But they keep fighting over small things. Including the rate of decline of tariffs by the United States and how many agricultural products China will buy.
A bill from the American House of Representatives regulating Chinese camps for ethnic Muslim minorities in Xinjiang has also angered Beijing. This further obscures the prospect of any agreement.
China warned Wednesday that the bill would affect bilateral cooperation and said Beijing would take “decisive” action to protect its interests.
US President Donald Trump said on Thursday that trade talks with China were “moving forward,”. This gives an optimistic tone. Even when Chinese officials held fast that the existing tariffs had to come out as part of a temporary agreement.
However, earlier this week, Trump rocked global markets when he said the deal might have to wait until after the 2020 election.
In the absence of a breakthrough, Washington said a new round of tariffs for Chinese goods will come into force on December 15, 2019.
A Chinese official told Reuters that China would apply its own tariffs. This is a countermeasure. In such circumstances it can certainly destroy every opportunity of a short-term trade agreement.
China’s trade surplus for November reached USD 38.73 billion. This is lower than the estimated surplus of USD 46.30 billion in polls. Then a surplus of USD 42.81 billion was recorded in October 2019. (reuters/yos)